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Utility Seeks Approval To Drop 24-Month Contracts In Planned Default Service Auctions
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As the PUC of Ohio considers a pending electric security plan application that would govern electricity default service at Duke Energy Ohio for the period beginning June 1, 2025, Duke Energy Ohio has petitioned PUCO for authority to conduct two interim standard service offer auctions prior to June 1, 2025, to procure the entirety of SSO supplies for the period June 1, 2025 to May 31, 2026
A pending stipulation which would establish an ESP at Duke, for a term of June 1, 2025 through May 31, 2028, contemplates the use of a mix of 12- and 24-month SSO contracts at Duke. PUCO has yet to rule on the proposed stipulation and ESP
See more background here.
As a result, Duke sought approval for the interim auctions since a PUCO order on the ESP as a whole, which would include attendant approval to procure SSO supplies for the period beginning June 1, 2025, may not come early enough for Duke to still procure, in an orderly manner, the supplies needed to serve SSO load for the period beginning June 1, 2025
Notably, Duke Energy Ohio proposes that these two interim auctions, for SSO supplies for the 2025-26 delivery period, would procure 12-month contracts exclusively, with no 24-month contracts procured.
Since there are no prior overhanging contracts in the SSO portfolio, Duke's sought relief would mean that the entirety of SSO supplies for the period June 1, 2025 to May 31, 2026 would be served under 12-month contracts which are to be procured in March and April 2025
In contrast, the stipulation had contemplated that, for the June 1, 2025 to May 31, 2026 period, 70% of the SSO portfolio would consist of 12-month contracts, and 30% of the SSO portfolio would consist of 24-month contracts
In support of limiting, to 12-month contracts, the products to be procured in the interim auctions for supplies for the period June 1, 2025 to May 31, 2026, Duke noted that relying solely on 12-month contracts for this interim period would avoid the need to use a capacity proxy price, since a PJM BRA capacity price has been set for the 2025/26 delivery year
Duke proposes to split the procurement of 12-month contracts for the June 1, 2025 to May 31, 2026 period into two auctions -- one held in March 2025, and a second held in April 2025 (with 50% of load procured in each)
Case 24-0278-EL-SSO
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February
3, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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